Grain and livestock futures end higher in Tuesday.
Randy Martinson, Martinson Ag, says funds continue to cover shorts in the grain markets but there are some fundamentals also helping to support the rally.
Corn continued to digest the smaller quarterly stocks in Monday’s report which indicated stronger demand than expected.
Case in point was another 7.7 million bushel sale to unknown destinations announced Tuesday morning.
He says the corn market has also been trading South American weather and the variability in early yields.
December corn pushed to new highs for the move again and Martinson says a close above $4.35 is the next technical barrier to keep the funds buying.
Corn also got help from the rally in crude oil and wheat.
Wheat not only saw fund short covering but was putting in some war premium with the escalation of tensions in the Middle East.
Martinson says wheat is also adding weather premium with dry conditions in the Southern Plains and Black Sea region.
Soybeans started lower with some forecasts for rain in Brazil and harvest pressure but ended slightly higher following corn and wheat and also seeing fund buying.
He says variability in yields is also supporting soybeans.
Techincally in the soybeans he is watching the $10.65 area on the November as a close above this level could bring in more technical buying.
Cattle futures closed higher with new highs for the move scored in live cattle futures.
The funds are also buying and pushing their already long position in cattle but the higher cash trade has been helping and boxed beef cutouts were also higher at noon and on the close.
Lean hog futures rebounded Tuesday on technical buying and stronger cutouts.
However, the meat markets traded very resilient in light of the East and Gulf Coast port strike, which could slow exports.
